According to the think tank Global Trade Research Initiative (GTRI), India's bilateral trade with China reached at $118.4 billion in the fiscal year 2024.

• China replaced the United States (US) which was India’s top trading partner during FY22 and FY23.
• GTRI’s Report also highlighted that Between FY19 and FY24, India’s exports to China witnessed a marginal decline in exports by 0.6%, while imports from China surged by 44.7 %. 

Concerns related to rising import Dependence on China

• National Security: Trade can be used as a tool to exert political pressure on India or advance its strategic interests.
  • It complicates efforts to address border disputes effectively.
  • Reliance on Chinese technology and equipment in critical sectors such as telecom will make more vulnerable to cyber warfare. 
• China’s share in India's electronics sector import (including telecom) is about 43.9%.
• Strategic autonomy: Constrains India’s ability to counter Chinese influence in neighbourhood (e.g. South Asia and Indian Ocean region). 
• Supply chain vulnerability: India’s pharmaceutical sector is highly dependent on China’s Active Pharmaceutical Ingredients (APIs). 
• Other: Stifle the growth of domestic industries as they are not able to compete with low-cost import, etc.